Waec Model Questions Vol1 2024 Commerce Question 20
Practice objective / multiple choice question 20 from the 2024 Waec Model Questions Vol1 Commerce examination.
An insurance company offers a fire‑insurance policy with a sum insured of ₦5,000,000. Historical data indicate that the probability of a fire claim in a year is 0.004. The policy includes a deductible of ₦200,000, meaning the insurer pays only the amount of loss exceeding the deductible. The company wishes to add a loading of 25% on the pure premium to cover administrative expenses and profit, and after loading a tax of 10% is applied to the premium. What annual premium should the company charge for this policy?
Answer Options
About This Question
This is Waec Model Questions Vol1 2024 Commerce Question 20. It is one of the objective questions from the 2024 Waec Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
Master the Exam!
You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.